1823
result(s)
Non-Resident Taxes and the Role of House Price Expectations
Staff Analytical Note 2019-8
Mikael Khan,
Matthieu Verstraete
In recent years, the governments of Ontario and British Columbia have imposed taxes on purchases by non-Canadian residents of residential properties in certain jurisdictions.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Financial stability,
Housing
JEL Code(s):
D,
D8,
D84,
R,
R2,
R21
Do Survey Expectations of Stock Returns Reflect Risk Adjustments?
Staff Working Paper 2019-11
Klaus Adam,
Dmitry Matveev,
Stefan Nagel
Motivated by the observation that survey expectations of stock returns are inconsistent with rational return expectations under real-world probabilities, we investigate whether alternative expectations hypotheses entertained in the literature on asset pricing are consistent with the survey evidence.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Asset Pricing,
Economic models,
Financial markets
JEL Code(s):
G,
G1,
G10,
G12
Limiting Sender’s Information in Bayesian Persuasion
Staff Working Paper 2019-10
Shota Ichihashi
This paper studies how the outcome of Bayesian persuasion depends on a sender’s information. I study a game in which, prior to the sender’s information disclosure, the designer can restrict the most informative signal that the sender can generate.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Economic models
JEL Code(s):
D,
D8,
D82,
D83
Inflation Targeting and Liquidity Traps Under Endogenous Credibility
Staff Working Paper 2019-9
Cars Hommes,
Joep Lustenhouwer
Policy implications are derived for an inflation-targeting central bank, whose credibility is endogenous and depends on its past ability to achieve its targets. This is done in a New Keynesian framework with heterogeneous and boundedly rational expectations.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Business fluctuations and cycles,
Credibility,
Monetary Policy
JEL Code(s):
C,
C6,
C62,
E,
E3,
E32,
E5,
E52
Liquidity Management of Canadian Corporate Bond Mutual Funds: A Machine Learning Approach
Staff Analytical Note 2019-7
Rohan Arora,
Chen Fan,
Guillaume Ouellet Leblanc
How do Canadian corporate bond mutual funds meet investor redemptions? We revisit this question using decision tree and random forest algorithms. We uncover new patterns in the decisions made by fund managers: the interaction between a larger, market-wide term spread and relatively less-liquid holdings increases the probability that a fund manager will sell less-liquid assets (corporate bonds) to meet redemptions. The evidence also shows that machine learning algorithms can extract new knowledge that is not apparent using a classical linear modelling approach.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Financial markets,
Financial stability
JEL Code(s):
G,
G1,
G2,
G20,
G23
The Size and Characteristics of Informal (“Gig”) Work in Canada
Staff Analytical Note 2019-6
Olena Kostyshyna,
Corinne Luu
Underlying wage growth has fallen short of what would be consistent with an economy operating with little or no slack. While many factors could explain this weakness, the availability of additional labour resources from informal (“gig”) work—not fully captured in standard measures of employment and hours worked—may play a role.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Labour markets,
Recent economic and financial developments
JEL Code(s):
E,
E2,
E24,
E26,
J,
J2,
J20,
J3,
J30,
J4
Macroprudential Policy with Capital Buffers
Staff Working Paper 2019-8
Josef Schroth
This paper studies optimal bank capital requirements in a model of endogenous bank funding conditions. I find that requirements should be higher during good times such that a macroprudential “buffer” is provided.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Business fluctuations and cycles,
Credit and credit aggregates,
Credit risk management,
Financial stability,
Financial system regulation and policies,
Lender of last resort
JEL Code(s):
E,
E1,
E13,
E3,
E32,
E4,
E44
Inequality in Parental Transfers, Borrowing Constraints and Optimal Higher Education Subsidies
Staff Working Paper 2019-7
Youngmin Park
This paper studies optimal education subsidies when parental transfers are unequally distributed across students and cannot be publicly observed. After documenting substantial inequality in parental transfers among US college students with similar family resources, I examine its implications for how the education subsidy should vary with schooling level and family resources to minimize inefficiencies generated by borrowing constraints.
Content Type(s):
Staff Research,
Staff Working Papers
Topic(s):
Fiscal Policy,
Potential output,
Productivity
JEL Code(s):
D,
D1,
D14,
D6,
D61,
D64,
D8,
D82,
I,
I2,
I22,
J,
J2,
J24
Crypto ‘Money’: Perspective of a Couple of Canadian Central Bankers
Staff Discussion Paper 2019-1
James Chapman,
Carolyn A. Wilkins
The market for cryptoassets has exploded in size in the 10 years since bitcoin was launched. The technology underlying cryptoassets, blockchain, has also been held up as a technology that promises to transform entire industries.
Content Type(s):
Staff Research,
Staff Discussion Papers
Topic(s):
Bank notes,
Digital Currencies and Fintech,
Financial services,
Payment clearing and settlement systems
JEL Code(s):
E,
E4,
E41,
E42,
E5,
E51,
E58,
H,
H4,
P,
P4,
P43
Canada’s Monetary Policy Report: If Text Could Speak, What Would It Say?
Staff Analytical Note 2019-5
André Binette,
Dmitri Tchebotarev
This note analyzes the evolution of the narrative in the Bank of Canada’s Monetary Policy Report (MPR). It presents descriptive statistics on the core text, including length, most frequently used words and readability level—the three Ls. Although each Governor of the Bank of Canada focuses on the macroeconomic events of the day and the mandate of inflation targeting, we observe that the language used in the MPR varies somewhat from one Governor’s tenure to the next.
Content Type(s):
Staff Research,
Staff Analytical Notes
Topic(s):
Central bank research,
Monetary Policy
JEL Code(s):
E,
E0,
E02,
E5,
E52